Permits certain portion of municipal development trust funds to be spent on housing affordability assistance to veterans.

This bill allows New Jersey municipalities to allocate up to 30% of their municipal development trust funds - collected from residential construction fees - to provide down payment grants for first-time veteran homebuyers. Each veteran can receive up to $15,000 in grants, which do not count as income for eligibility in other state programs or for tax purposes. The funds must come from existing trust funds designated for affordable housing, not new taxes, and supplement existing state housing assistance programs like the NJ Housing and Mortgage Finance Agency’s low-interest loans. This provision directly benefits veterans purchasing their first home in municipalities that choose to implement it.